Coles ends talks with TPG Capital over Greencross buy, shares jump (updated)

Coles

16/07/2026 23:55

Adds analyst comment in paragraphs 3 and 5, share moves in 6
July 17 (Reuters) - Australia's Coles Group COL.AX said on Friday it had ended discussions with U.S. private equity firm TPG Capital over a potential acquisition of Greencross Pet Wellness, sending its shares up as much as 5%.
The announcement came weeks after Australia's No. 2 grocer confirmed talks were underway for the purchase of the pets and vets business, a disclosure that had sent its shares down more than 4%.
"We believe this is at least partly due to the negative investor feedback surrounding the deal," Citi analysts said in a note.
Local media reports had said TPG was likely aiming for an A$4 billion ($2.80 billion) deal, the valuation it had planned to seek for the business in a potential float.
Brokerage Citi had several concerns about the deal, including the potential funding structure and a weakening outlook for the pet care industry.
Coles shares rose as much as 5% to A$23.68 on Friday and were on track for their biggest one-day gain since early March, pushing the staples sub-index .AXSJ more than 2% higher. 
TPG Capital did not immediately respond to a Reuters request for comment.        
($1 = 1.4294 Australian dollars)

 (Reporting by Sneha Kumar in Bengaluru; Editing by Jonathan Ananda and Subhranshu Sahu)
 ((Sneha.Kumar@thomsonreuters.com;))